Telus 2005 Annual Report Download - page 8

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• subject to several exceptions, removed a requirement that the Company, before
purchasing any of its shares, must make an offer to every shareholder holding shares of
the class or series to be purchased, to purchase the shares pro rata;
• eliminated cumulative voting rights with respect to the election of directors and amended
the Articles to permit holders of common shares to vote by a separate resolution for each
director rather than a slate; and
• amended the Articles to provide that the special rights and restrictions relating to foreign
ownership compliance under the Telecommunications Act (Canada) attaching to the
common shares and the non-voting shares be extended to ensure similar compliance
under both the Radiocommunication Act (Canada) and the Broadcasting Act (Canada).
DESCRIPTION OF THE BUSINESS AND GENERAL DEVELOPMENTS
TELUS is the largest incumbent telecommunications service provider in western Canada and
provides a wide range of telecommunication products and services including data, IP, voice,
video and other services to consumers and businesses and operates as a full-service incumbent
local exchange carrier (“ILEC”) in western Canada and eastern Quebec. With its national
wireline fibre-optic network which offers advanced IP-based network applications, TELUS is a
national provider of data, IP and voice solutions for business customers across Canada. TELUS
is also a national facilities-based wireless provider, with more than 4.5 million subscribers,
offering digital personal communications services (“PCS”), enhanced specialized mobile radio
(“ESMR”) services, wireless Internet and data, paging and analogue cellular services.
The Company earns the majority of its revenue (voice local, voice long distance, data and wireless
network revenue) from access to, and usage of, the Company’s telecommunication infrastructure.
The majority of the balance of the Company’s revenue (other revenue and wireless equipment
revenue) arises from providing products that facilitate access to, and usage of, the Company’s
telecommunication infrastructure.
TELUS’ national growth strategy
Since the January 1999 merger between BC TELECOM and TC, the Company has been
pursuing a national wireline and wireless growth strategy outside Alberta and B.C. into the rest
of Canada, most particularly into central Canada. This has been implemented by both organic
growth and through a series of acquisitions which have provided TELUS with a regional full
service presence in the province of Québec, national digital wireless communications networks
and subscribers, PCS and other wireless spectrum nationally, employees, infrastructure and sales
distribution channels in central and eastern Canada. Through growth, investment and a series of
strategic acquisitions completed prior to 2002, TELUS became a leading managed data-hosting
provider in Canada with a national network of intelligent Internet data centres.
The Company has a coast-to-coast backbone fibre optic-network, which interconnects cities
between Halifax and Vancouver and extends into the U.S. via points of presence in Albany,
Ashburn, Palo Alto, Buffalo, Chicago, Detroit, New York and Seattle. This network is fully
integrated with TELUS’ extensive metropolitan networks in Alberta and B.C. and connects into